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Home > General Insurance Code of Practice
The Australian insurance industry has developed a new General Insurance Code of Practice which is now being implemented across the country.
The new Code includes benchmarks for dealing with claims and complaints, and helping consumers get a better understanding of insurance products.
CommInsure is proud to be a signatory to the Code.
To read the Code, or get more information, visit www.codeofpractice.com.au
In 1995 general insurers created Australia's first General Insurance Industry Code of Practice.
On 18 July 2005 the industry launched its new Code of Practice. The new Code is set to raise service standards, improve claims and complaints handling and help people better understand how general insurance works.
Developed in concert with consumers, business and the insurance industry, the new code is the general insurance industry's commitment to be open, fair and honest in all its dealings with customers.
The new Code enshrines the industry's promise to improve customer service across all types of general insurance - for both individual consumers and business customers.
The new Code goes above and beyond current regulation as many of the standards in the existing code were absorbed into the Financial Services Reform Act (FSRA).
Signatories to the new Code are responsible for ensuring that not only their employees but also their Authorised Representatives and their Service Providers meet or exceed the standard set out in the new code.
When customers provide information to a Code signatory, they can be confident that only relevant information will be used to assess application for insurance.
If insurers are unable to provide cover, they will give reasons for the decision and they will refer customers to another insurer, the Financial Ombudsman or the National Insurance Brokers Association (NIBA) for further information about insurance options.
Responding to claims is what insurance is all about. Australian general insurers pay an average of $55 million in claims each business day and the new Code is designed to speed up the claims process.
If a customer makes an insurance claim and has provided all the relevant information and no further investigation is required, the insurer will make a decision and notify the customer within ten business days.
The Code recognises that when people are in dire need as a result of loss or damage, insurers should respond by fast tracking claims or making advance payments.
When a Code signatory selects and directly authorises a repairer, they accept responsibility for the quality of repairs and materials and agree to handle any complaints about the repairs.
The new Code is compassionate - it recognises that when natural disasters strike, the insurance industry needs to be flexible and understanding in helping affected communities.
The new Code includes a cooling off period for people making claims following a natural disaster and it codifies the role of the Insurance Disaster Response Organisation in providing an industry wide response to natural disasters.
People need information about insurance to make informed decisions. The new Code requires insurers to make available up-to-date, clear, concise information available to help the community understand how general insurance works.
The Code is also written in plain language so that it is easy to read and understand.
If a customer is unhappy with the service they receive or a decision about an application or claim, Code signatories are required to inform them of how to make a complaint.
The new Code also has clear and agreed timeframes for responding to complaints.
The industry is committed to the benchmarks in the new Code and welcomes the scrutiny provided by the Financial Ombudsman Service which will monitor each signatory's compliance with the new Code.
In the event of a Code breach, the signatory can be required to undertake remedial action or may have sanctions imposed upon them.
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